East Village has highest rental vacancy rate in NYC

"Manhattan’s East Village had the highest vacancy rates in March with 3.24 percent of its rental units available, Citi- Habitats said. Soho and TriBeCa, both in Lower Manhattan, had the lowest vacancy rate: 1.84 percent." (Bloomberg)

Power to the renter?

From today's Wall Street Journal:

As the housing downturn deepens, rental rates are falling in many major U.S. cities, including New York and Los Angeles, and tenants are finding they have greater leeway to renegotiate their leases.

Fear of losing a good tenant is often enough to make landlords reconsider their rent. Jenna Carpenter, a 28-year-old living in a $2,000-per-month one-bedroom apartment on New York's Lower East Side, didn't plan to renegotiate her contract. But once she told her landlord she didn't plan to renew her lease in March, he offered to lower her rent. They are now negotiating a cut of between $300 and $400 a month.

Stories from the front lines of renting: Recent Yale grads get a deal on an apartment in the LES

From The LES Free Press, written by students in the Columbia University Graduate School of Journalism:

The apartment is tiny. None of its three bedrooms holds a bed bigger than a twin. But it’s renovated, clean, and it’s in the middle of the fast-moving Lower East Side – the perfect place for three newly-minted Yale graduates to make their first mark on the city. Apartment hunters Andrew Cedotal, Allison Guy and Danielle La Rocco are on the fence, however. For almost $3,300 a month, they expect more space.

“It’s a great apartment, but it’s a little smaller than we’re looking for,” La Rocco says to the agent showing the place.

What happens next is something that would have been unheard of even a year ago, but that real estate experts say is becoming more common: the agent offers to broker a better deal if the three will take the apartment today. Within minutes, the trio has reduced their rent by a few hundred dollars a month, and La Rocco is dispatched to get a money order while the other two fill out applications. The deal is done.

Do episodes like this mean Manhattan’s notoriously bullish rental market is softening? Daniel Baum, a broker who runs the Real Estate Group, an industry organization that puts out an analysis of Manhattan rental prices each month, says yes.

"Serial evictees" and rotten tenants

Interesting post by Manhattan-based real-estate attorney Joseph Ferrara about "serial evictees" at the sellsius blog yesterday. As he explains, "A serial evictee will rent an apartment or home with no intention of paying rent (other than the 1 month + security to get in the place). Instead, they plan to get evicted -– after they work the system for up to a year in free rent or cut a deal with the landlord to move out."

I'll let him continue.

"I ran into a few of these clever folks. One of my favorite stories involves an ingenious young woman who stopped paying rent and then staged her own lock-out (with a police report as proof), knowing the penalty in NYC was triple damages plus legal fees. She wanted my client, a poor spoken immigrant, to give her 6 months free rent…. or else. My investigation uncovered the fraud — turned out she was dating a law student who gave her the idea, which she had used several times with success. When I was cross-examining her on the stand and she realized her cover was blown, she literally bolted from the witness stand and tried to run out of the court room. She was tackled by the court officer and hauled into the judge’s chamber (along with her attorney). Only my compassionate client saved her from a new address, with free rent, at the city jail."

OK. Anyway, the post went on to highlight a new site called rottentenant.com -- "landlords venting and helping landlords."